The term ‘resident’ is not defined in the tax law.
However, tax residency has been defined in the context of withholding tax (WHT) provisions as:
- A natural person who is present for a continuous or intermittent period of not less than 183 days in a year.
- A legal person established in Oman / with main or actual headquarters located in Oman.
Permanent establishment (PE)
PE is defined in very broad terms and includes places of sale, places of management, branches, offices, factories, workshops, mines, quarries, other places of extraction of natural resources, and a building site, place of construction, or assembly project (if it continues for more than 90 days). However, the mere use of storage or display facilities does not constitute a PE. The definition of PE references carrying on business in Oman, either directly or through a dependent agent.
Additionally, the definition stipulates that a total stay of 90 days during a 12-month period creates a PE in Oman. However, this 90-day period applies to rendering of consultancy services or other services only. Under this definition, while the sale of goods into Oman will not be deemed to be a taxable activity, a contract for the supply and installation of equipment is likely to attract tax. By the same criterion, services rendered by personnel visiting Oman will be treated as taxable activities, applying the 90-day rule.